Causes for concern
"Budimex are the most prominent representatives from the construction
sector on the Warsaw Stock Exchange. How this company is doing impinges on the
whole sector," says analyst Arkadiusz Chojnacki
of Bank Handlowy
The market is looking forward to Budimex's results, which are to be published
on February 27th, (just before Eurobuild went to press).
"These results will probably be weak and surprising," adds the analyst.
The market consensus on the forecast for Budimex's net loss comes to around PLN
3.9 mln in the fourth quarter and PLN 28.26 mln for the whole of 2002. The loss
recorded for 2001 amounted to PLN 28.1 mln.
According to Chojnacki, the recent decline of Budimex's shares could have
resulted from the delay in construction of the new Terminal Two at Okęcie
airport (whose total contract value is about USD 200 mln).
Another cause for concern in the construction sector is the petition for
Mostostal Zabrze's bankruptcy. The company's shares have recently fallen sharply
on the WSE.
"Although the petition was lodged by a small company and the number of
receivables is not very high, inevitably a company's standing suffers when
something like that happens," says Chojnacki.
The company's current hardship is related to its extensive involvement in
housing construction, a sector which has witnessed a steep fall in income, adds
Chojnacki. The number of completed flats last year decreased by 6.5%, compared
to 2001.
Contributed by:
Mirosław Kuk
